1606 Corp. develops AI chatbots for various industries, initially targeting the CBD market, and is expanding into other sectors with licensing-based revenue, despite current financial losses.

# Company Summary - 1606 Corp.

## Business Focus
- **Primary Industry:** Artificial Intelligence (AI) technology, specifically developing chatbots for various consumer-facing industries.
- **Main Products & Services:**
  - **AI Chatbots:** Tailored for the CBD industry initially, with the capability to expand to other sectors such as solar, auto parts, health and beauty, and vitamins.
  - **Industry-Specific Training:** Chatbots trained to answer industry-specific questions and provide product recommendations based on customer inputs.
  - **Specialized Chatbot for Public Companies:** "IRChat" for public companies’ websites, providing instant access to SEC filings, company updates, press releases, and general information.
  - **Partnerships & Distribution:**
    - Partnered with ARXT Labs to create proprietary AI chatbots.
    - Signed distribution agreement with Cool Blue Distribution to market the chatbot services to CBD companies and retailers.
    - Uses independent sales organizations (ISOs) such as CBD distributors, web designers, and payment processors to sell and bundle chatbot services.

## Market & Industry Position
- Targets rapidly growing markets:
  - **AI Market:** Valued at ~$428 billion in 2022, projected to reach ~$2.25 trillion by 2030 with a CAGR of 33.2%–38.1%.
  - **CBD Market:** Valued around $6.4 billion in 2022, with an expected CAGR of 16.2% from 2023 to 2030.

## Revenue & Financials
- **2024 Revenue:** $7,195 (from CBD product sales, which is discontinued)
- **2023 Revenue:** $1,603 (initial CBD product sales)
- **2024 Gross Loss:** $118 (due to discontinuation of CBD sales)
- **Operating Expenses 2024:** $4,138,157 (significantly increased due to stock-based compensation)
- **Net Loss 2024:** $4,514,971 (compared to $1,580,733 in 2023)
- **Revenue Model:** Monthly recurring licensing fees for chatbot services.

## Employees
- **Number of Employees:** 1 full-time employee (CEO Austen Lambrecht)
- Uses additional independent contractors and consultants.

## Business Development Highlights
- Achieved initial deployment of chatbot "ChatCBDW" for CBD clients and Cool Blue’s website in late 2023.
- Launched "IRChat" for public companies in April 2024.
- Signed non-binding LOI in September 2024 to acquire minority stake in AI biotech Adnexus; discussions ongoing.
- Strong emphasis on expanding chatbot applications for multiple industries beyond CBD.

## Physical & Corporate Infrastructure
- **Headquarters:** Phoenix, Arizona
- **Lease:** Approximately 100 sq ft office space, rent of $580/month (month-to-month)

## Key Financial Notes
- **Capital:** Issued shares of common stock, Class A Preferred stock, and Series B Super Voting Preferred Stock.
- **Major Transactions:**
  - Issuance of shares for services, product conversions, and investments.
  - Borrowed funds from CEO and related parties, some of which are in default.
  - Significant operating expenses driven by stock compensation and ongoing development.

**Summary:**  
1606 Corp. specializes in creating AI chatbot solutions primarily for the CBD industry, with expanding plans into broader consumer sectors. Despite current losses and minimal revenue from its CBD product sales (which are now discontinued), the company has launched market-ready chatbot products, signed distribution partnerships, and operates with a highly concentrated workforce. It aims to leverage growing markets in AI and CBD by licensing its technology via recurring monthly fees.

1606 Corp. is a Nevada-based company specializing in AI chatbots for the CBD industry, with a focus on enhancing customer interactions and product recommendations.

# 1606 Corp. Business Overview

## Company Description
1606 Corp. is a Nevada-based corporation founded in February 2021 as a spin-off from Singlepoint Inc. The company specializes in developing AI chatbots tailored for the cannabidiol (CBD) industry. The corporate headquarters is located in Phoenix, Arizona.

## Products and Services
- **AI Chatbots for CBD Industry**: 
  - The company's primary product is **chatCBDW by CBDW AI**, an AI-driven chatbot designed to assist customers with inquiries about CBD products and make product recommendations based on user input.
  - The technology is adaptable and can be applied to various industries, including solar, beauty, and auto parts.

## Business Transition
- Initially focused on selling hemp cigarettes, the company pivoted to AI chatbot technology in August 2023, leveraging its knowledge of the CBD market.
- 1606 Corp. has signed a distribution agreement with **Cool Blue Distribution** to market and sell the chatbot service to CBD companies.

## Marketing and Distribution Strategy
- The company utilizes a recurring monthly licensing fee model for businesses to adopt their chatbot technology.
- Marketing efforts include:
  - Website promotions
  - Online advertisements
  - Email campaigns targeted at CBD brands and retailers
  - Collaboration with Independent Sales Organizations (ISOs)

## Competitive Strengths
1. **Deep Expertise in AI**: 
   - A team with a combined 115 years of technology and development experience.
2. **Industry Focus**: 
   - The chatbot technology is developed specifically for the CBD market but can extend to various consumer sectors.
3. **Strong Intellectual Property Portfolio**: 
   - Ownership of the technology ensures competitiveness and protection of innovations.  

## Employees
The company employs:
- **2 Full-time Employees**:
  - Chief Executive Officer: Gregory Lambrecht
  - Vice President: Austen Lambrecht
- Additional personnel are contracted, with no part-time employees currently.

## Financial Information
As of the provided information, specific figures include:
- **Revenue and Income**: Not disclosed in the summary; hence, exact revenue and income figures are not provided. Additional financial data would be required to understand the company's financial standing.

## Customer Base
- The company has begun signing up initial customers to test and implement their chatbot on CBD websites, indicating a focus on building this customer base post-transition.

## Corporate Governance and Risk Management
- The company's management monitors cybersecurity risks effectively but does not have dedicated subcommittees for cybersecurity on its board.
- No significant legal issues are reported, and they have not experienced any cybersecurity breaches.

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For a detailed status on the company's financial performance (including revenue, income, number of customers), specific figures or reports would need to be reviewed, as they were not provided in the initial overview.

1606 CORP.

10-K / March 31, 2025

10-K / April 17, 2024

10-K / March 31, 2025

Company Summary - 1606 Corp.

Business Focus

Market & Industry Position

Revenue & Financials

Employees

Business Development Highlights

Physical & Corporate Infrastructure

Key Financial Notes